Important Solution
Liquefied Natural Gas (LNG) is the abbreviation for Liquefied Natural Gas (natural gas converted from a gaseous state to a liquid state by cooling it down to -2600F or -1600C), a clean fossil fuel that creates less than 40% of CO2 emissions compared to coal and less than 30% compared to oil when burned.
Currently, LNG is seen as the “trump card” of the global clean energy trend. Vietnam is not left out after joining 147 countries committed to achieving net-zero emissions by 2050.
A 70,000-ton LNG ship arrived at Cai Mep – Thi Vai port (Ba Ria-Vung Tau province) in July 2023, invested by PetroVietnam Gas Corporation.
The special milestone for Vietnam’s “harmonization” with global LNG is the July 2023 voyage of a 70,000-ton LNG ship that arrived at Cai Mep – Thi Vai port (Ba Ria – Vung Tau province), invested by PetroVietnam Gas Corporation (PVGas – stock code: GAS), marking a major turning point for Vietnam’s energy sector.
As an expert in environmental management, hazardous substances, and sustainable development, Assoc. Prof. Dr. Thai Van Nam – Rector of the Postgraduate Institute, Ho Chi Minh City University of Technology (HUTECH) revealed that the world’s population has exceeded 8 billion, leading to a sharp increase in global energy consumption. The world is at an alarm level when carbon emissions causing global warming have reached 36.8 billion tons in 2022. To meet the goal of limiting global temperature rise and preventing excessive climate change, scientists assert the urgent need to deeply cut emissions in the near future.
The solution to this problem is to enhance the use of natural gas and develop renewable energy. According to statistics, global LNG demand is increasing at an average rate of 6.3% per year, with global LNG capacity increasing from 340 million tons per year (2017) to 453 million tons per year by 2022. The US and many other countries have accelerated the switch to LNG.
In Vietnam, producing and importing LNG is also seen as an important solution to ensure national energy security. Resolution No. 55/NQ-TW of the Politburo on February 11, 2020 regarding the strategic orientation for national energy development in Vietnam until 2030, with a vision to 2045, sets out the mission of developing the gas industry, “prioritizing investment in technical infrastructure to serve LNG importation and consumption,” as well as “focusing on the rapid development of gas-fired power plants using LNG, gradually turning gas-fired power into an important power source to support the regulation of the system.”
Mr. Nam believes that with its green, clean, sustainable, and environmentally friendly characteristics, LNG is identified as Vietnam’s optimal energy solution at the moment. LNG will help reduce pressure on domestic gas sources, diversify energy sources, minimize energy security risks, and create opportunities for socio-economic development.
Assoc. Prof. Dr. Thai Van Nam – Rector of the Postgraduate Institute, Ho Chi Minh City University of Technology (HUTECH).
Power Plan VIII has identified that rejuvenating gas-fired power from LNG will account for about 14.9% of the total power capacity of the national power generation system by 2030 and is one of the sources that ensure sufficient, stable, and safe supply to the national power system.
“With such demand, Vietnam is expected to become a major importer with a strong influence on the global LNG market and is currently being sought after by many international LNG suppliers,” said Assoc. Prof. Dr. Thai Van Nam.
Additionally, with its favorable geographical position in the center of Southeast Asia and many large seaports capable of receiving LNG vessels, facilitating LNG importation and distribution, Vietnam has the potential to become an LNG energy center in the region. This will attract international investors and businesses.
The Turnaround
Mr. Pham Van Phong – General Director of PV GAS, the leading enterprise in Vietnam’s gas industry, said that the company has put the 1 million-ton LNG Terminal project in Thi Vai (Ba Ria – Vung Tau province) into operation since July 2023, and it is the only unit currently granted a certificate of eligibility as an LNG importer and exporter in Vietnam.
“PV GAS has completed the central LNG infrastructure system in Thi Vai and officially started supplying LNG for industrial production from today (March 15) under the integrated LPG/CNG/LNG business model, offering customers diverse choices in products, flexible supply sources and competitive prices,” said Mr. Phong.
The PV GAS General Director affirmed that LNG, with superior energy utilization efficiency, environmental friendliness, and convenience in transportation and stable supply sources, is the leading product in PV GAS’s optimal energy solution package for the market. The LNG supply milestone – a low-emission fuel – for industrial production marks an important stage in PV GAS’s journey towards achieving net-zero emissions by 2050 in line with the Vietnamese Prime Minister’s commitment at COP26.
In the future, Mr. Phong said, PV GAS will start the phase 2 of the Thi Vai LNG Terminal with a capacity increased to 3 million tons per year, expected to be operational by 2026; implement the Sơn Mỹ LNG Central Terminal project in Binh Thuan with a total capacity of 6 million tons per year, and carry out LNG Central Terminal investment projects in the Northern and Central regions of Vietnam. PV GAS has also established agreements with leading LNG suppliers worldwide to ensure stable and competitive supply for the domestic market.
PV GAS’s Thi Vai LNG Terminal.
According to Assoc. Prof. Dr. Thai Van Nam, with its large energy storage capacity and reduced harmful emissions, LNG has become an environmentally friendly and significantly cost-saving solution. Currently, LNG is widely used in the electricity industry, steel manufacturing, metals, and more. LNG can also be used in transportation and provide energy for hotels, restaurants, and tourist areas.
In particular, LNG-fired power generates less than 40% of CO2 emissions compared to coal and less than 30% compared to oil. Therefore, developing LNG-fired power plants ensures energy security, environmental protection, and maintains sustainable development. Using LNG in power generation not only helps reduce environmental emissions but also contributes to energy security thanks to easy transportation and diversified supply sources. This is also a solution for businesses to reduce CO2 emissions from their production, business, and service activities.
